In the US, a serious crisis because of the need to combat the spread of coronavirus has led to the fact that a significant part of the production has stopped, which has a negative impact on the economy. This writes GOBankingRates.
Although in industries where you can work from home, running happy in the minority, a huge part of the country remains in a state of economic uncertainty. Congress is already in talks about a large stimulus package that includes direct cash payments in the amount of $1200 per person or $2400 for married couples.
But what people will do with the payment from the government? This question was asked approximately 1,100 Americans in the survey conducted by GOBankingRates. The results show that many Americans are not prepared financially for what’s coming.
The main results
More than 40% of respondents would spend any cash incentives on products and other needs.
Approximately one in four Americans has no savings for emergencies, and about the same proportion of respondents has a margin of three weeks or less.
Americans do not support efforts to rescue big business. Six out of 10 respondents said that the government should not help in the fight against the coronavirus krupnym business.
Less than 40% of respondents who are still working, can work from home.
About two-thirds of respondents said that the crisis has affected them financially or that they expect it.
The Americans plan to cover the purchase of the necessary money from the government
The vast majority of Americans answered that they will use a check from the government to meet urgent needs.
Approximately 2 out of 5 respondents said they will spend money on groceries and other necessities. Along with the two next most common responses is to contribute to the emergency Fund to cope with reduced hours or dismissal — this means that nearly 3 out of 4 of respondents were interested primarily in meeting their immediate needs or strengthening the stability of their financial situation.
There was also another group of answers which showed that a decent number of people thinking of others at this critical time of need. Just over 5% will send money to family and friends, and almost 7% of the funds will be used to support a local business.
Finally, about 4% of people would attempt to exploit the sudden drop in the market to buy shares at reduced prices. A deeper dive into this group shows an interesting split on the floor. Although the vast majority of men and women is not going to buy shares, in men this plan was much more likely than women. Only 2.23% of women gave this response, compared with 5.96% of men, showing that men are almost three times more likely to see the current crisis as an opportunity to invest in the future.
However, they do not think that the government should help big business. The immediate impact of coronavirus on working Americans is serious and difficult, but it also felt large corporations.
Of 59.95% of respondents did not approve the rescue of large enterprises during the current crisis against of 40.05% who approve of this step.
Men were significantly more likely to ensure that large companies received some financial aid, compared to women: more than 55% said they disapprove of the plan, compared with nearly 64% of women claim the same.
Coronavirus has a financial impact on Americans
About 2 out of 3 Americans (36%) replied that they have already felt the financial consequences of a pandemic or expect to soon feel (28%).
Just over a third of Americans (36%) that have not suffered financially from a pandemic.
To withstand the pressures of emergency situations, you should always have a Fund for emergencies, and the last few weeks have clearly demonstrated why keeping cash reserves is so important. Unfortunately, for many people, the reality of the inability to save quickly turned into an inevitable problem.
About every fourth American (24,98%) reported that they have no emergency savings funds. In addition, almost one in four (23,19%) reported that, although they had savings, they only lasted one to three weeks. In General, this means that about half of the people who participated in the survey had less than a month of expenses covered by their emergency savings.
19% said that their savings will last for 2 months, was 14.27% for 3-6 months, 4,73% for 6-11 months and 13,83% of Americans said that they have enough savings to live on for more than a year.
Working life of the Americans was seriously disturbed
Suddenly to be without work for an extended period of time is one of the main things, in which case you should be saving, but for such a large country as the United States, stop the mass and the closure of facilities, puts the national economy on truly uncharted territory.
Although the ability to work from home previously could be considered as additional income, it has evolved into a critical aspect of employment over the past few weeks.
And, unfortunately, only a lucky few are working at jobs that offer such a luxury. About 4 out of 10 respondents answered that they have no opportunity to work from home — all the more worrisome when you consider that one third of the respondents answered that they were retired or unemployed. Only a quarter of respondents said that they can work from home.
The question of who has access to paid sick leave, raises the same disturbing result.
Almost 6 of 10 respondents had no opportunity to take paid sick leave, which means that the recovery time after COVID-19 can deliver a crushing financial blow for a large portion of the United States. The company, which in recent years has adopted a policy of remote work, made an incredibly wise investment in infrastructure.
The effects of coronavirus on personal Finance can be a massive
The current pandemic suddenly and unexpectedly led US to the crisis, which few people could think of. The results of this survey show that many are already experiencing serious repercussions in his personal life and financial situation. Hourly workers with low wages, constituting a huge portion of Americans, now faced with a situation where they cannot work and earn income, and many tolerate it without emergency savings, which can be so important during such period.
Whatever ways Americans are planning to spend financial support — and whatever form it ultimately chose — it is clear that help is needed for so many people. And, if you’re one of the lucky few that either escaped serious economic consequences or well prepared for a pandemic, you can donate a wide range of groups, offering services that have become especially important in the coming weeks and months:
No Kid Hungry
The CDC Foundation
And there are many, many other groups that work hard to help combat this crisis.